Enact (ACT) 7 May 222022 Q1 Earnings call transcript

Hello, and welcome to Enact's First Quarter Earnings Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Daniel Kohl, Vice President of Investor Relations, you may begin.

Welcome to our first quarter earnings call.

Joining me today are Rohit Gupta, President and Chief Executive Officer; and Dean Mitchell, Chief Financial Officer and Treasurer. overview strategy. business, an progress performance provide our against will of our our and Rohit then the Rohit will turning remarks. Dean discuss the results first call before quarter back to for closing details some of our prepared After we your will questions. remarks, take www.ir.enactmi.com. market and issued results first available Relations the operational XXXX metrics materials of contains comprehensive a section the yesterday company's Investor after are earnings Enact's closed of website The set quarter and we financial for of at the financial on section Results. Quarterly the under marked Today's include statements. call and use the will is being recorded of forward-looking and These as subject on statements which to are current based and risks today's assumptions, may are estimates, that differ. expectations actual results materially projections date cause uncertainties, of to result of information. obligation new undertake any or We no a to update as revise such statements

SEC of which please in For site. today our available relevant regarding turn Rohit. prepared most of on release call these cautionary measures language today's presentation uncertainties, management's and Reconciliations SEC, statements as these Web as the Also, well keep risks certain the the are and our forward-looking in our with measures. in Web I'll over review in press mind press non-GAAP the earnings and upcoming include be our release, metrics to the With can please GAAP earnings on that, materials will site. filings a found to our discussion filing the remarks

our welcome quarter and Thank call. everyone, to first you, Good Daniel. morning, earnings

financial adjusted and equity for income year-over-year; We a and or XX.X%. initiated return million generated operating The program; first an share to results, operating of per our grew quarterly quarter marked including XX% portfolio on $XXX start and Enact. of $X.XX excellent dividend XXXX strong

maintaining these sheet achieved commitment strong risk Importantly, results balance also management. we to while strength and our

in new them opportunities market customers, strategy and dynamic We We innovative deepened and with with business. our pursued to a environment. win providing relationships strengthened execute solutions on continue to prudently

that provides our financial for strong return balance policyholders, continued invest and prioritize to sheet growth existing support flexibility shareholders. also We a to to capital

ago one be the benefits a that and client our had with in noted the We've as seen to said enhanced number would relationships key this XX% relationships of first we quarter, quarter profitable have up strengthen quarter contributed our deepened relationship levels IPO our last customers. continue performance with first the year XXXX, of we our And of we activated a ability strength We financial force This result targeted we of reactivated record either a business. key strong that independence. insurance and or expand of continue as to have to as our momentum to in the write progress in a customer. from substantial new

price new have in target XXXX. as right with are pursuing pricing We committed business the high-quality the that yielding risk we to low business right told to you we for mid-teen returns

weighted end During pricing our on evident The average written quarter, of The at quality market. FICO of saw pricing magnitude in stabilize credit was portfolio high the we with continue the in fewer portfolio the lower to of our [XXX]. again and was moves score new quarter quarter. insurance

resulted our of expectations and loan-to-value the newer, level focused that age to release, million perform Core patterns. normal average a decline is economic expected reserve books that X.X%, in our in we sequentially activity which in with our resulting was at again large We low newer loss as our origination. to $XX layered be of is The the about and X%. sustainable. a see to mitigation books modest efforts continued outpaced Our new risk at total delinquencies, contributed a our continue did loss a concentration during delinquencies. delinquencies something uptick XX%, was These ratio remained ratio in and combination robust new in believe risk quarter, loss and continued negative track line effective recovery management, to

and During newer strengthen ability period The transactions widening the protection quarter, position to we source protection on loss volatility successfully and markets in to executed X these acquired books. PMIERs additional reinsurance execution loss of excess our capital demonstrates loss capital capital spreads. our of our of cost-effective a transactions and

our in to in ended $X.X XX% billion As history of of of of the pay approved at our Notably, to a the second-highest in reflecting risk Board strength capital of our XXX% we achieve initiation The quarterly allocation quarter end was us our positioned the buffer sheet covered the significant with our with that a the dividend force transfers. to publish dividend. quarter, of cash intent and standards strategy milestone our credit our announcement by Directors the or business balance of sufficiency. risk PMIERs program,

our to commitment quarter confidence meeting in The on step and second focus is these per the first This our of XXXX be of a significant will paid at reflects share. that $X.XX shareholders, additional details create plan on capital and more in to capital the dividends Dean our provide framework allocation moment. year-end. value a will for by speak returning and quarterly we about

the over it current appreciation Dean, discuss higher business. interest Market leading I to like home would to environment to and for the remain dynamics thinking rate our in such how as to and challenges but are We've in supportive rates all are complex the policy changes XXXX. affordability. turn mortgage which I business headlines. present price undoubtedly is Factors about overall seen we Before

towards our ongoing pre-pandemic underpin term, consumer to this to very However, higher declines. a market. post-pandemic a We originations Further, interest historical than housing the at which demand. homeownership mortgage strong drives the a of strong, of labor resilient will remains and in private robust persistency the continue we refinancing insurance insurance force all market higher as healthy the purchase drive portfolio in demand improve near believe as activity expect savings consequence remains supply is rates, market home-buying shift with levels, lows the

resilient and implementation mortgage definition evolved greater Enact the a book for a XX% credit decade. industry risk-adjusted improved both framework which our all levels pricing, and executed at The uniformity our pace combined sheet significant the enhancements credit risk-based flexibility. being and qualified our higher us drives with at financial of returns to move the cost-effective program have manufacturing Importantly, quality; the covered by balance business. and which last These programs and drive of an risk substantially in risk strength faster with and transfer and produces strong provide stable credit transfer granular

in opportunities enable the loan are quality auto mitigation leverage loss our risk the significantly grow to In have we pricing management prudent drive we adapt have addition, of our strengthened deep that we granularity and in to and ever positioned to Today, investments appetite. superior experience better innovation made than and in continues market return portfolio. underwriting risk-adjusted to digitization decisioning within provide significant a our believe growth manage for we and and

dynamics every monitor will these been we navigate and have as day as execute strategy. to We continue we our on

We date to in our going the are execute detail. now encouraged confident to performance forward. performance Dean our turn more will and by our first call I ability to to quarter in discuss over

was to per results the share the diluted per diluted XXXX. or delivered the the also $XXX Rohit. in XXXX. Thanks, everyone. diluted last net GAAP compared period $X.XX in $XXX We of last quarter Adjusted $X.XX quarter diluted in of per share share $X.XX year as $X.XX the first compared million as fourth income of million operating quarter morning, XXXX. share diluted very or was same per and in in $X.XX quarter in per period strong share fourth to and financial the $X.XX same diluted income share per Good year

key to revenue Turning drivers.

insurance seasonally expectations down was lower in purchase originations. primarily for New with sequentially line by billion and $XX the from billion, driven written $XX quarter, our

for made for up quarter. up total our purchase from written insurance XX% transactions New of XX% quarter, last the NIW

insurance increased remained $XX.X In year written our XX% in and consistent in last year-over-year reached addition, at billion, a X% from Risk of Insurance growing quarter first at was XX% driven record XXXX. XX% quarter $XX.X increase quarter. driven primarily new strong the and new up $XXX sequentially. we XX%, primarily payment persistency in by quarter first force monthly increasing up XXXX, insurance rates, persistency. in ago new interest end at a The and up billion with written force of in improved for the was billion, policies up from quarterly our With of quarter. last increase and billion Persistency during the quarter XX% $XX.X portfolio. year-end an of from insurance to saw by quarter first first the period the

compared and above sequentially $XXX decline to period older, down mortgage same rising rates, Net year-over-year of $XXX our X% a by lapse mortgage in by to our driven compared with policies Revenues the continued lower of for in current written the last addition premium cancellations the the the driven in down $XXX and million million $XXX market year. quarter insurance policies as increased. rates. were new to earned million X% persistency persistency were premiums was as single in-force million, last and In percentage rates quarter higher-priced increase

earned credit In of driven from factors our year-over-year by in ceded insurance in program. partially of decrease risk use the were was These force. addition, also transfer the net premiums higher the our premiums growth quarter by expanded current in offset

insurance of policies compared basis by points and premium as sequentially higher-priced written. base primarily new X to driven XX.X basis basis Our of was points X.X year-over-year down lapse our rate points the older

in quarterly can macroeconomic premium we've which discussed a of that there rates, the volatile past, drive on and be basis. consumer-driven As movements number are in factors a

was addition estimate to approximately premium primarily environment. transfer X assumption points portfolio X current Transitioning year the Given earned policies insurance new Investment higher on remainder our by as calls interest higher-priced is and single the our net assumptions, basis a of the from view the of in in lapse XXXX premium sequentially quarter net credit written, over as lower larger decline bond rate both an older, year income flat related cancellations the our premium rate given earned premiums basis is of offset rate, was to our XXXX. and including our rate impacted risk persistency, ceded compared rising or point also quarter full $XX our million, ago our the by versus during market first to program. premium in and lower

$XX million quarter XXXX. Losses to quarter the to credit. as Turning in first quarter were of compared last and negative $X in million $XX the million

loss our levels as first in prior was for of primarily driven Our expectations. delinquencies, losses in quarter The was by on and quarter the in ratio XXXX. reserve loss compared have benefit ratio million cured at and which of release, X% above last to quarter COVID-related negative X% the XXXX $XX XX% the quarter primarily

new delinquencies approximately our New of development through from and are expectations. line approximately pattern sequential X,XXX, year increase delinquencies new aging loss primarily decrease a normal and The in going XXX by was in an were performing X,XXX levels. the and that approximately sequentially of in books with driven increase ago large our quarter their

Our X.X%, new of indicative recovery. rate quarter of with was consistent pre-pandemic for development delinquency and the ongoing levels

Our throughout claim X%, new for rate on rate claim quarter the was estimate the consistent delinquencies approximately for new with delinquencies XXXX.

cure delinquencies XX,XXX decreased I'll XXXX. approximately since delinquencies COVID-XX cures in outpacing new rate Our quarter total quarter and a associated ever-to-date new the measures on new first now approximately in improvement X.X% the of ongoing both compared of delinquencies. $XX,XXX cure of ratio of our performance Cures delinquency those turn modestly quarter to prior of and of as April driven represent the by XXX%. to the or delinquencies continuation represented

loss As COVID by Page price delinquencies forbearance delinquencies the to programs, depicted have on home presentation, appreciation of on earnings XX% COVID-related resolutions cured. XX mitigation XXXX have aided Cures now favorable of our of approximately date efforts. and been our

of our of XX% our assessment. as having an end of the cure mark-to-market cumulative quarter. quarter reserve rates an index-based equity driver the delinquent equity result, through position and the using embedded release policies have remains of actions in substantial delinquencies to with time The the a or As the of are taken continued increase more estimated primary XX% current approximately price house

the to As the delinquencies as I've both this evidence that loss well for potential serve to in as this can progress of future saw quarter. a as claim and of frequency we potential the the claim noted past, mitigant trend ultimately during

the in fourth XX%, million for million, expenses Operating expense the XXXX. was respectively $XX of expenses. to XX% as to $XX and were ratio compared the and quarter quarter Turning

costs. in the preparation reminder, $X XXXX of and of million expenses restructuring strategic a operating included fourth transaction As quarter costs

Moving to capital and liquidity.

$X.X Our billion quarter compared XXXX. $X.X coverage first in XXX% in published approximately PMIERs our At had approximately or and transfer provided of billion risk program. above the approximately the credit of quarter or of sequentially by sufficiency we end, $X.X to PMIERs the increased fourth credit to quarter $X XXX% PMIERs requirements billion capital loss billion

reinsurance part quarter transfer program. of executed referenced, our transactions X this Rohit risk we As credit as

loss of The throughout a coverage transaction covering first written reinsurance insurance reinsurers panel excess from new of secured highly our XXXX. rated

attractive secure executed incremental through both protection terms a of reinsurance executed markets. parts we its the of billion the in loss risk loss transaction in XXXX, we reinsurance sources, allowed XXXX us coverage another the $XXX serves of capital addition, this the In another transfer $X.X excess through on to volatility traditional risk credit traditional which market. other half our despite market to in value program reinsurance Since total market. capital have We on believe of million of force, second the and diversified inception point transaction proof of leveraging as

of program. will Board subject initiation dividend quarter of approval the share each per $X.XX of to month quarterly be Directors the Future in third Board for paid be initial May. the dividend payments targeted our announced, quarterly previously to The of quarter. approved of subsequent XXXX Director in payable be dividend will a second As and

$XXX management quarterly operating reflects our well insurance capital company part additional plans. our Inc. the EMICO, bolster mortgage Enact use flexibility these Insurance fund or to to and capital our towards its return in XXXX dividends distributed a paid primary holding company, dividend and as in proceeds quarterly Mortgage the shareholders. from believe program of capital to company, Holdings progress to at to We million our April, Enact financial holding During intend distributions We initiation meaningful our as additional Corporation,

to appropriate over of we amount the later the to shareholders capital quarterly plan course total continue dividend, evaluate return to in the additional of to addition In return to to year. most capital shareholders the XXXX. We'll

by growing funding shaped which view prioritization policyholders, capital supporting be shareholders. our new our will prioritizes returning insurance to mortgage ultimate capital business and Our framework, existing business, attractive our opportunities

capital our landscape of performance. will regulatory prospective total the Our of based and prevailing return view business the on also macroeconomic conditions, be and

generated we recap, in to macroeconomic performance very So environment. strong a dynamic

continue we in With to while and year, capital shareholders. and approach remainder the through back will capital it growth a we As disciplined I'll liquidity that, to the our to execute investing maintain returning Rohit. of turn to

contributions member to Thanks, Dean. each of for All year. thank very start I'd to a strong and Enact all, in the like to team the every their our performance.

well on in the business is our beyond sheet, market. as navigate in build positioned generated. have record dynamic and we Our successfully to XXXX company our we we and momentum and are With balance ability for force continue to insurance confident in a this strong

Our important mortgage even dreams others In of the home qualify made homes while keep it loan to environment. a today's their role for buyers through has also have to achieve homeownership families in might we more for market possible quarter, helping in modifications. who not hard their become otherwise working in XX,XXX first

play drive remain and committed working this of we of role advocates excited and increase groups solutions affordability the market in accessibility, very administration, the Capitol consumer Hill, to the sustainability with proud trade homeownership. to and are We that by and

your We are Operator? questions. take now ready to

will Our Rick Instructions] [Operator question from from come line Shane the first JPMorgan. of

more as importantly we market as Look, of for on in either you're of loan distortions fall, pushback of in in market pricing more the terms greater originators any evolving Curious aggressive seeing see or volumes terms as if competition terms structures. --

basis an terms seen competition competition credit MI almost of in have market for coming price points, the having of some by pricing structuring. more policy rates months in loan MI the say impact on gone last terms would up space I either in that of origination have we interest So as the to the market X in industry, or or seen asking the not over in XXX

to So at continue what in we seen of similar the time, have dynamics that this past. those believe point we to remain

to comparable think think analogs time think evolving And landscape where the the we most environment? frame What terms of and do sort when you of of the historically, in is you about competitive are?

question? landscape, you your industry to when competitive you to Rick, are broad at And MI first similar say origination referring or

that bifurcated to it both. hadn't I it's in both. the probably describing. I But important Actually, consider think way you're

the not to origination in to. what say and in place see my are quarter. the comment the dynamics market, fewer it's marketplace, I moves MI in said saw We the can first would in competition remarks, on in So lower market pricing. comparable what of it prepared probably our as be pricing on the we to continue I stabilization magnitude and

the macro us the historically, are just different point finding of So that are in gives that in the dynamic dynamics to in decades confidence X would so approaching And time. of last difficult that of times industry kind of comparable say it's than the conditions to compare we point industry, I any many we that a the of or have terms prior stabilization. gone through current economic the

I the comment. Rohit, with appreciate last I you. agree

straws terms environment what I we're It's think the this at of drives as well. of part grasping question. understanding in

line will of Credit Doug from question next Our the Harter from come Suisse.

the just the as persistency that how that, in policyholders potential for Understanding price said, seen? you we've do appreciation about is strong policy the home think given you different. to particular, cancel environment But their

turn cancels. about over relates borrower talking borrower in off to talk Rohit it it behavior start as initiated general. to about to I'll I'll persistency

points sequentially rates. interest So was to and year-over-year, driven to by up up just persistency recap, XX XX%, X primarily higher points

process borrower current persistency and a think given from month qualification the really X and I about results or closing, lag still loan between on origination time loan there's conditions. market

I'll think we'd persistency mortgage really result runoff March. as expect recent took of above And a and for February borrower. quarter and the into future throughout you make of it over way persistency out of I the to Rohit, include QX the increase our doesn't our levels continue XX% rates we as the place that So remainder year. of turn a to to that, of QX

just and on I Dean's add Doug, borrowers. So then to would one point extra question, persistency

we on $XXX gives to rates bigger picture, persistency our hedge us higher force of an prices. tailwind ability think pressure expect and And to from stays insurance in on any originations in as higher persistency, to it just I billion our be home interest market grow our a portfolio also against longer. ability

by Now cancels, might it's more. least believe factors on that there be borrower-initiated driven and at we X

to seasoning appraisal one and applies First combination is goes cancel cancels, for HOPA. submits loan-to-value of a on out, price. which is to requirement, GSEs that updated appraisal, a under of servicer essentially number That have MI gets borrower-initiated which a updated borrower their cancellation home to an requirements. appraisal and current request based to years borrowers

on Second an behalf submit to get it they it see thing servicer is borrower's appraisal to an their spend if action requires money, and to qualify.

So that appraisal, initiative to $XXX from $XXX the an not to and spend have cancellation. that then anywhere of on take have certainty they

terms So of borrower that's think about of trends how actual in considerations we cancellations. the

seen ago. even are eye some and our have We [Indiscernible], and keeping back portion in it. very X.X past, on we in number It's of recently the an volatility going that a years small

this So at of nothing comment. outside of that point report time to meaningful

guess is so what aware I that. the seasoning of requirement just I'm

seasoning significant first Doug, apply of that years. X a loans, would So And portfolio. portion of the between seasoned if I'm talking about loan minimum and to GSE is is our a requirement -- so

on of and and up book, it. to add And given of vintages, So beyond X be our you appraised that in-force to value. 'XX the XX% drops X X if current last you make That's XXXX X loan-to-value insurance years, but connect to our to cancellation think After needs points. updated kind the XX% concentration, X years another years then dots that, about just XX% 'XX there, based before minimum. current the for loan-to-value years X

book that a of requirement portion our requirements. or of that So doesn't seasoning meets seasoning barely meet kind

that about So think you borrower-initiated tells in-the-money you on risk how cancels.

the comes Bose George Our next from line question from KBW. of

of dividend look plan the then first, of Actually, a see of we just the year? in of a each or sort the special just out When base form a likely dividend XXXX, one kind this more the kind on is we and dividend. to regular dividend are to have into

combination be XXXX, as of the as into announced dividend I think or multiple as other share the expect return our components, last week form earlier capital of to later of plan you well you capital, of some return two. look a should forward a special out buyback whether we that last have or dividend, that quarterly -- a

And then switching to just underwriting.

very you that's just terms appreciation continued strong in appreciation, are anything strong newer the price doing given price changing -- home of the Just are Or differently underwriting loans? expectations continuing? home more loss given

changes, the so the to pricing in on matter terms same of the a of pricing pandemic question. would within and is expand normally made view that increasing saw X country and portions at reminder, And start monitoring changes of risk-based much say only we our able thanks we our a evolve. of we country. with price to see make in the the do May, a doing but benefits also level I of as that level actions in a a and are at the by we of as more alignment conditions credit our XXXX, down We not our one shut market kind XX% national as are and X basis agile we weeks, the the things geographic April market, in adjusting market we and as policy a pricing reminder, approach with for of

pre-global crisis. both in as financial broadly specifically say we industry in definition as finance well actions. that on to that's are to would rules than think the from about they given would boundaries not better agility the how pricing operate qualified regulatory environment, I comment used our risk-based much, But from perspective, our in underwriting going So mortgage and an I I'm much we say a fact industry pricing perspective opaque, be mortgage mortgage insurance

looking quality at level quality on our we in is from credit FICO risk in we levels. have be at that our whether as debt-to-income at published X.X% metrics, you're can which metric metric. continues to layered still force aggregate risk basis, lower look X.X%, good metric for our be score, strong also earnings written seen believe And in portfolio force, was which the insurance saw actually stay you so So a than presentation from you risk manufacturing -- risk at we whether the And ratio. we new continue total very see also quality, is layered risk, sustained. even our And to

So gives right a that on confidence books that us with view macro putting mind. we are in the

the Our next Dowling Geoffrey question come & will of from line from Partners. Dunn

I Just guess, number can start. of questions for how [Indiscernible] a a consideration the couple your possible expectations to this year of, results Dean, the another out? given first, is current a there from up for play dividend

I or think part distribution holding but the for additional capital coming proceeds company. is operating from think of be XXXX that's I the some just potential plan company that our dividend, would to

solidly XX%, rates, rates your like of cancellation suggest XX%, of could historical you above the years some kind back XXXX, improved you actually the go put suggestions I've seen mid-XXs size coming I see of way then those of think all persistency. of off the norm persistency to the does there maybe I'm analysis something with has or to rates Recession could it to persistency more And actuarial where on versus Great think to if out exclude and books And that go respect see curious the if that -- given we XX%? where -- we're

a It's Geoff. to harder little that, predict

we rate we at new I rates embedded weight interest books -- the XX%. certainly historical the back both an But with from not of interest would the long industry. described, rising that at environment, rates and go think combination QX say see looking have normal them, to fair trends March of just in coupled results interest which to above to written low I of February rate. a XX% the think it's from newer are progression persistency having historically and March XX% that, of long-run persistency think can the just run of full could I reasons reasonably large, you For

to add Geoff, Just, prospective that. one to

some mortgages seen would with difference homes one That The the different agree I people savings embedded also last embedded you X seen period. add against loans that savings close is times. over to of you higher than are think trend being consumer trillion $X.X home people's pre-pandemic Do significantly total that comments. up that, have level or is thing that haven't equity QX I rate be is generally we these that QX, I that in with have see is we but consumer seen of interest to we But see another equity. their go these in numbers Dean see agree And create would we equity with -- trend the And can higher. that much the paying prepayments. the from in years. time The pre-pandemic more. numbers in past, and in off in what does

more the where price the the equity this to And are concerns I'm ultimate is pressure. credit of What of relative recessionary then last, home in or performance, of bigger to a appreciation? trying about a the today ultimate terms possible about models? loss think we of with in is buildup factor think unemployment big what important, picture question on you credit. drivers When And

I delinquencies not that Geoff, I Right? but question, way Yes, claims you asked eventual think about think we if say to the you're implying and the losses. would were

just Yes, a it, more what credit, end call the the day, credit factor? loss, of credit important at economic ultimate the is

has remarks have Dean severity. in appreciation good reserving our them, delinquencies in mentioned price XX% prepared saw we increase delinquencies, would recent of been we've So that, say home front and a mitigant cycle, just at been in up, his delinquencies. we that unemployment have those seen for But least of the given significant both that from that in and that XX% a against if frequency went equity extrapolate the I what you

significant home he eventual a to to has if loss mitigation our So acts prices you a additional important. ask Officer, as book, rise any to just But Risk eventual perspective and were is you eventual I thinking to delinquency unemployment would our more development, if if to about at looking Derstine in are Chief a say, add. meaningful Michael see I'll claim mitigant loss. And

I mitigant. our an price modeling would remarks. considerations as viewed those definitely Home concur in is important appreciation with

think of seen much the in this we've extraction environment form I also second in lien. less equity

So mitigant is that stable we believe time. through that,

that, an to important will benefit believe way that have about losses. do we So price Home is appreciation ultimate to that. think a credit

come the Bhatia America. will from of question next Bank from Mihir line of Our

I start. maybe guess to

Just understand. I sure wanted to make

terms purchase like for originations, can't either Just been from and seen impact demand of what in been whatever But has mortgage mortgage on rates you've the rates on yet? any [Indiscernible] that I in purchase that. on higher things impact applications, higher maybe side originations. April. there Like from refi seen you've any there recently, has NIW the the understand

that's was purchase from by than and kind mortgage down I at when -- That perspective, obviously XX%, mortgage aligned XX-year QX QX front QX the general see originations well least purchase that. look as of more market market strong current the refi in insurance at more and both quarter much estimates, where X.X% as origination origination would you trending is the you driven about on on going and rate. market going a the down our by would a indication as side based results with our aggregate market say of on fix

X early in think last development As the X.X%. to now weeks rates quarter, risen have second in interest closer about we

applications, early these MBA now are Refinance the So hard than But on that. you applications average numbers. applications moving a right we just if way indicators. more say down purchase from look are on X-week are down not any would I early are purchase ago. a X% for indicators, keeping eye MBA month at an And

long where So term. the it's too say to early go trends origination

is mitigant, about a on that is a strong against any our in hedge business perspective Our our think as model, that pressure mortgage persistency originations. strong we

insurance we I at terms our we see when economic rates that consumer. that at of higher in a the higher how interest of this too low being of our comments kind inventory and home interest we say in this stickiness very an we demand. labor in the force supply to by better a line combination cycle price and on give existing rates terms repeat level in in as subsequent would we of balance impact I And and new that, in impact market our as the that environment while between interest top terms an a that obviously, offset of But my then [Indiscernible] that strong offset do consumer see on in and on indication insurance affordability, early being higher consumer trend different appreciation of a about market, originations. impacting very does thinking are housing So result see growth of savings, how And are higher growth, would force look trending market. rates and

on No, And wanted the then that's just expense. confirm fair. to

that. I your think the update year we full or $XXX $XX around Obviously, million. that, guidance little year? full was to for think of on the bit million for Any light a million, $XXX still should

No.

linear not throughout later as are drivers incentive costs Our of as compensation others. such tend the to result performance-based in and increase and year a quarters

while up standing in complete we In out addition journey And certain of have a go. room bit we're that, way, our more we're I'd call on that well our to still little just company to public activities. not

last guidance provided $XXX still number. I the that's good that to a I think million we remains intact. We'll But continue quarter think time. that obviously evaluate So through

for the that ratably capital scope just return I trying understand or there has around around you're -- guess there Is that to the quarterly consideration that. to buyback value. to dividends or higher to a that, announcement. parent mean, I'm trying to back focused I plan? about, the special below quite you are I question, like is a liquidity. bit. Just return incremental there buyback a for announcement discussion mean versus stake thinking in way I your what their thinking But are how a understand dividend? understand I just about back buy steady -- And quarterly whether is as or any book there? it contemplated last that you But for be my and understand, trading whether it's you the then on shares the to you've dividend through with feels Is is in just of terms mean you future a dividend keep And work And talked your the how capital ask capital anything? today's in go scope discussion launched return been dividend. to -- I a just about the like little wanted

results that happy $X.XX with program at the capital first in the in this with paid very additional to dividend year market. we we And are year-end, and shareholders out our are prepared point in returning expectations his provided be we Dean of dividend in comfortable in our to absolutely, we and produced quarterly dividend the have time as share. terms $X.XX to last return plan of original capital remarks, with that So of of December said initiating then per a we before with May

in combined be with special would in return we shared capital quarterly and be have So a line that dividend before. to what of

In buybacks, your are we terms it's about question share something that definitely of considering.

of float kind we to of in form shares compare our that how then return what analysis between and on are a unique right decide So of of dividends two. account about front total what taking combination would traditional our into or we our go finance buybacks also trading, share of before our that do our value need we And intrinsic capital through or terms does view XXX the situation, where is of special think to business.

that's majority and account board So Financial. we Genworth are that well shareholder, our as something into with taking discussing our as with definitely

Ryan Our next from Gilbert question from will BTIG. come

in well, back originations. as MBA up X%. is you scoring robust comments guess, the down applications purchase talked your the go for 'XX, to origination that constrained inventory about, guess I market purchase First I the to or wanted can which basic thinking can Is the unit decline can price you that well? originations that we purchase be volume is for enough volume, do home unit as the you're up offset about of how balance see? unit robust any limit appreciation idea the it might increase rates that that think purchase in basic is volume And idea year question, I interest expectations that in on against sharp that

definitely our of part Ryan, that's consideration.

very in purchase through the volume. question dollar terms So parsing good of

to we is those to that there trillion on I think in the $X.X seen trillion. [Indiscernible] market between be originations MBA But projections Mae, Fannie element an between $X.X estimates purchase forecast of have that on continue terms has Then loan to by of be price homeownership home amount. driven we increase is the been average optimistic basis, for in part trend very fundamental a and unit strong. continue

expected higher old the on 'XX 'XX years, the people the next as have We years time -- XX in shared first through reach numbers X years. number of first-time previous home X past average than being in buying age of that

market we think we drive are that rates strong there balance labor moving there that even with good a demand. balance think trends up consumer So And environment. in some being is that and fundamental being strong, with that interest this sheet

units. rise in market, wages. point driven XXXX purchase that what is appreciation, of depends still the for be that of end other could price we rest and your could bigger a XX-year seeing does HPA some rate on the Now that with part eventual compare mortgage absolutely But versus factors than like that the how and up of correct year? is inflation home market And originations by

guess, of are the levels that know higher anything line? My should considering I patterns. we DQs how thinking that about macroeconomic move you given And normal question XQ, and loss just be uncertainty, for investors DQs the or into that of second rest on we analysts the is they're trending new as trend year, and in the line with as in I new on

our we of about had the significant up XXX referenced and Those books through largely increase. to portfolio. ones and represent about Rohit age by X%, loss XXXX, pattern. think sequentially, kind normal described which more continue years, the large book XXXX in delinquencies their new a the concentration driven overall We go they're I development

that delinquencies of through peak curves, going X, age years probably in to continue that they something loss as continue QX. along They're lines. that, doesn't until to peak expectation kind of to stop doesn't X, years Our part generate that those

think there's probably those still to some I years. So book for room go

delinquencies. I large smaller are books how intersect of interesting producing think with fewer some to of will books combination that see the new and the be it fewer those both

was in of of weight years. the books the those simply concentration producing first earlier you XXXX just It's quarter So new by the XXXX fewer in book overwhelmed have XXXX and in the delinquencies.

we I don't loss have books. to trend through anything think our that we probably you there's into They're continuing head normal provided pattern, as different what XXXX. the that's to we terms could of probably I So development give remarks remainder than prepared that's guidance on large in that age going of in continue

for questions showing to turn remarks. any call the And like back I'm the queue. I'd Gupta in Rohit further any closing not to over

appreciate Victor, good year. you the and your We interest all. day. speaking Have forward and Thank with Enact look you, you throughout a Bye-bye. in thank to

today's Thank This concludes call. for conference participating. you

disconnect. now have may day. Everyone, a You great